JPX announced that it would raise Kioxia’s free-float ratio from 15% to 50%. While this is expected to generate more than ¥2 trillion in buying demand, the stock price is said to be recovering slowly.
Japan Exchange Group announced that it would raise Kioxia Holdings’ free-float ratio in TOPIX from the current 15% to 50%. Estimates indicate that the increase could bring in more than ¥2 trillion in buying, mainly from passive funds, and is being viewed as a potential source of support for the stock price.
However, it has been pointed out that the stock price is not recovering strongly despite this major supply-and-demand catalyst. The article explains the reasons in turn from the perspective of the free-float ratio.
The commentary is part of individual investor and investment YouTuber Moriguchi Ryo’s (森口 亮) “Maruwakari Market Analysis” series and presents his views on the latest catalyst.